Dental Office Feasibility Study in Illinois

Illinois dental loans sit below the national midpoint

Illinois dentists borrow less than dentists nationally: the median loan of $315,000 is 0.62x the median dental loan nationwide, and the median is the distinctive metric of this cell. Dental practices are a smaller slice of SBA lending in Illinois than nationwide (location quotient 0.78x), and the class ranks 11 of 39 in the state, although Illinois still ranks 9 of 54 among states on 234 loans and $130.3 million approved over FY2017 to FY2026.

Cook County and the Illinois dental lenders

Cook County alone has 112 loans, with DuPage at 39, Lake at 15 and Kane at 13. The middle half of Illinois loans runs from $136,800 to $723,250. Franchised practices are absent, at 0.00% of Illinois loans. SBA 7(a) carried 198 loans and SBA 504 36; The Huntington National Bank holds 40 of the 7(a) loans for $22.4 million and Live Oak Banking Company 13 worth $17.7 million, while Small Business Growth Corporation holds 21 of the 504 loans for $14.7 million, ahead of SomerCor 504, Inc. with 7 and Regional Development Company with 5. Newtek Bank, National Association, Village Bank and Trust, National Association and Wells Fargo Bank National Association each hold 7 Illinois loans.

Repayment has been clean

Not one of the 111 Illinois dental loans paid out across FY2017 to FY2021 has been charged off, 0.00% to date and within five years, though loans still open keep that a floor. Cancellations are the live risk: at least 11.9% of Illinois approvals dated FY2017 to FY2024 were cancelled, with the ceiling also 11.9%. For a borrower, the smaller median means Illinois deals carry less debt than the class does nationally, and the study should explain why this practice's numbers fit that pattern.

The Illinois study for a dental practice has to test patient demand in the draw area, the competing Illinois practices and the payer mix; when a practice is being bought, it must also test the seller's patient retention and collections. Cost covers the purchase price or build-out and equipment. Coverage of the Illinois debt should be shown on collections after the owner-dentist's reasonable compensation, not before. Should real estate be part of the request, the appraisal ought to treat it as medical space.